BioPharma Credit, the specialist life sciences debt investor, is in a senior secured note purchase agreement for the issuance and sale of senior secured notes in an aggregate original principal amount of up to $150 million by OptiNose US, Inc. alongside BioPharma Credit Investments (Biopharma V), a private fund also investing in life sciences debt managed by Pharmakon Advisors launched in June 2019.
OptiNose US, Inc. is a wholly-owned subsidiary of OptiNose, a commercial-stage specialty pharmaceutical company with a current market capitalisation of approximately $280 million, reminded BioPharma Credit. As described below, the company’s share of the transaction will be up to $82.5 million and BioPharma Credit will initially invest $44.0 million.
Optinose’s leading product, Xhance (fluticasone propionate), is a nasal spray approved by the U.S. Food and Drug Administration (FDA) in September 2017 for the treatment of nasal polyps in patients 18 years or older.
During the quarter ended 30 June, 2019 Optinose reported Xhance revenue of US$6.7 million, a 68% sequential increase from the previous quarter, Biopharma Credit said in its announcement. As of 30 June 2019, Optinose had $144.0 million of cash and liquid investments. Proceeds from the issuance and sale of the first tranche of senior secured notes, along with available cash on hand, were used to repay and retire Optinose’s existing term loan with Athyrium Opportunities III Acquisition, LP, which had an outstanding balance of $75.0 million and a maturity date of June 2023, BioPharma Credit said.
Senior secured notes in an aggregate original principal amount of up to US$150 million will be issued and sold in up to four tranches, each maturing in September 2024 and bearing interest at 10.75 percent per annum along with a one-time additional consideration of 0.75 percent of the aggregate original principal amount of senior secured notes which the BioPharma Credit and BioPharma-V are committed to purchase under the facility and approximately 800,000 warrants exercisable into common stock of OptiNose, Inc.